What is the intrinsic value of the stock

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Reference no: EM132071686

A firm has preferred stock outstanding. This stock has made constant dividend payments of $5.95. This stock has a beta of 1.5, the risk free rate is 4.4% and the market risk premium is 5.3%. Assuming this trend continues indefinetly, what is the intrinsic value of the stock in 10 periods, just after the 10th dividend is paid?

Reference no: EM132071686

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